Thursday, 23 March 2017

Harmonic Filters Demand to be Heavily Influenced by Trends in Power Quality Management

Demand for Harmonic Filters Climbs High on Swelling Need for Power in Utilities

Growing concerns over the quality of power and power transmission, triggered by the swelling need for power on utilities, have boosted the demand for harmonic filters across the world, TMR’s analysis notes. The sales volume of these filter has also been climbing high on the back on increasing installation of variable frequency drives (VFDS) in the recent past. In 2015, harmonic filters gained an overall market value of US$697.2 mn, globally.

Over the next few years, the implementation of strict rules pertaining to energy consumption in industries is projected to upswing the demand for harmonic filters, specifically in IT industry and data centers. However, the dearth of consumer awareness regarding harmonic suppression will limit their application across other industries. Besides, harmonic filters are expensive and their installation and maintenance incur a significant amount as well, which also will hamper their adoption to some extent.

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The global harmonic filter market is expected to rise at a CAGR of 6.50% during the period from 2016 to 2024 and reach an opportunity worth US$1.2 bn by the end of 2024.

Active Harmonic Filters to Gain Impetus

Harmonic filters are available in two types: Active and passive. Passive harmonic filters enjoy a higher demand in comparison with active harmonic filters, owing to their cost efficiency and robust design. In 2015, the passive harmonic filter segment accounted for more than a share of 75% of the overall demand. The segment is expected to remain dominant in the coming years; however, its share in the total demand is likely to drop to 74% by the end of 2024.

Active harmonic filters will gain significant impetus over the next few years, states TMR. The rising awareness regarding the benefits offered by these filters in terms of voltage stability and harmonic mitigation is projected to drive this segment at a CAGR of 8.1% from 2016 to 2024.

Asia Pacific to Remain at Center of Global Harmonic Filters Market

The market for harmonic filters stretches across Asia Pacific, Europe, Latin America, North America, and the Middle East and Africa. With a share of nearly 38%, Asia Pacific has emerged as the largest contributor to the global market in 2015. The region has suffered massive losses of energy during distribution and transmission due to poor power quality, which has compelled enterprises operating in this region to deploy harmonic filters in order to ensure improved power quality.

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As the region witnesses a soaring need for electricity, the demand for harmonic filters is likely to increase extensively in the coming years. Rising at a CAGR of 6.80% during the period from 2016 to 2024, the market opportunity is estimated to increase from US$264.3 mn in 2015 to US$471.6 mn by the end of 2024.

Europe emerged second in the global harmonic filter market in 2015; however, the region is likely to experience a sluggish demand for these filters in the coming years. Thanks to the availability of high-quality power infrastructure, harmonic concerns do not amount to be a problem in Europe.

At the forefront of the global harmonic filter market are companies such as ABB Ltd., Emerson Electric Co., and Schneider Electric SE. Collectively, these three players account for a share of 41% in the overall market.

MTE Corp., Eaton Corp. Plc, TDK Corp., Crompton Greaves Ltd., Schaffner Holding AG, Baron Power Ltd., Danfoss A/S, Siemens AG, and Comsys AB are some of the other prominent participants in the highly concentrated market for harmonic filters.

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